Q4 2024 Meritage Homes Corp Earnings Call Transcript
Key Points
- Meritage Homes Corp (MTH) achieved a record high closing revenue of $6.3 billion in 2024, despite a decrease in average sales price.
- The company maintained a strong home closing gross margin of 24.9% for the full year 2024, above their long-term target.
- Meritage Homes Corp (MTH) achieved a significant improvement in construction cycle times, returning to historical averages of 120 days.
- The company demonstrated a strong commitment to shareholder returns, repurchasing nearly 6% of outstanding shares since 2022 and increasing cash dividends.
- Meritage Homes Corp (MTH) expanded its market presence by entering new regions, including the Gulf Coast and Huntsville, Alabama.
- The company experienced a 12% year-over-year decrease in fourth quarter 2024 diluted EPS, attributed to lower home closing revenue and gross profit.
- Meritage Homes Corp (MTH) faced challenges with elevated financing incentives, impacting gross margins and average sales prices.
- The company anticipates continued elevated use of financing incentives due to the volatile mortgage rate environment.
- Meritage Homes Corp (MTH) reported a decrease in average sales price on orders due to increased financing incentives and a shift in product and geographic mix.
- The company is operating in a challenging environment with a 7% mortgage rate, which could impact future sales and margins.
Greetings. Welcome to the Meritage Homes fourth quarter 2024 analyst call. (Operator Instructions) As a reminder, this conference is being recorded. At this time, it is now my pleasure to introduce Emily Tadano, Vice President of Investor Relations and ESG. Emily, you may now begin.
Thank you, operator. Good morning, and welcome to our analyst call to discuss our fourth quarter 2024 results. We issued the press release yesterday after the market closed. You can find it along with the slides we'll refer to during this call on our website at investors.meritagehomes.com or by selecting the Investor Relations link at the bottom of our home page.
Please refer to slide 2 cautioning you that our statements during this call as well as in the earnings release and accompanying slides contain forward-looking statements. Those and any other projections represent the current opinions of management, which are subject to change at any time, and we assume no obligation to update them. Any
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